AxoGen (LT3) Q3 2026 Earnings Report
DE:LT3 Q3 2026 EPS Results
- Actual EPS
- EUR 0.19
- Consensus EPS
- EUR 0.12
- Beat/Miss
- Beat by +EUR 0.07
- One Year Ago EPS
- EUR 0.11
DE:LT3 Q3 2026 Revenue Results
- Actual Revenue
- EUR 67.90M
- Expected Revenue
- EUR 65.77M
- Beat/Miss
- Beat by +EUR 2.13M
- YoY Revenue Growth
- +26.22%
Earnings Announcement Details
- Quarter
- Q3 2026
- Date
- 10/28/2026
- Time
- Before Open
- Conference Call
- Wednesday, October 28, 2026
AxoGen's next earnings date is estimated for February 23, 2027, based on past reporting schedules.
Q3 2026 Earnings Call Audio
Q3 2026 Earnings Slide Deck
Q3 2026 Earnings Call Summary
The call was strongly positive, supported by 26.2% year-over-year revenue growth, accelerating breast performance, improved adjusted profitability, expanded payer coverage, clinical-study progress, completion of the BioCircuit acquisition, and raised full-year revenue guidance. The principal challenges were lower year-over-year gross margin, expected fourth-quarter margin pressure, higher operating and acquisition-related costs, Aetna's utilization-management restriction, and future amortization and integration considerations. Highlights significantly outweighed lowlights.
For full-year 2026, Axogen now expects revenue growth of at least 29% or revenue of at least $290 million, including at least $7 million of revenue from BioCircuit; excluding BioCircuit, organic revenue is expected to be at least $283 million, representing organic growth of at least 26%, with gross margin of at least 73% and positive free cash flow. The guidance does not assume material benefit from payer coverage decisions beyond what's already known or from prostate market development, and BioCircuit revenue guidance contemplates some level of integration or disruption risk; the purchase-accounting inventory step-up could negatively impact gross margin in the fourth quarter and for the full year relative to current expectations. Gross margin is expected to decline in the fourth quarter sequentially and to be slightly less than the second quarter. Full-year 2027 is expected to be more in line with full-year 2026, with formal 2027 guidance in the first quarter; the $34 million of NerveTape sales next year is incremental and net of cannibalization. Prostate is not included in current or long-range guidance, and extremities are expected to range from very high single digit to low double-digit growth quarter-to-quarter, year in, year out.
- Strong Third-Quarter Revenue GrowthThird-quarter revenue was $75.8 million, up 26.2% year-over-year, with growth in all markets. Breast revenue grew more than 50% year-over-year, while extremities, OMF, and head and neck combined grew 10.7%.
- Improved Profitability and Adjusted EBITDAGAAP net income was $2.3 million, compared with $700,000 in the third quarter of 2025. Adjusted net income increased to $13.1 million from $6.1 million, and adjusted EBITDA increased to $13.4 million from $9.2 million. Adjusted EBITDA margin rose 2.3 percentage points year-over-year to 17.7%.
- Strong Cash Position and Free Cash FlowCash, cash equivalents, restricted cash, and investments totaled $350.1 million as of September 30, 2026, including proceeds from the September equity offering. The company generated $18.9 million of free cash flow through the first nine months of 2026.
- Breast Market MomentumThird-quarter breast growth was over 60%, following 47% growth in the first half. The company had roughly 485 active breast accounts, up more than 95 year-over-year, and roughly 590 active surgeons, up more than 140 year-over-year. Breast Resensation penetration was estimated at around 11%.
- Breast Training and Commercial ExpansionAxogen held its final two surgeon training programs planned for 2026 and trained more than 50 plastic surgeons in the Resensation technique. The breast sales force reached 31 representatives and 3 Regional Directors, 10 more representatives than at the start of the year.
- Extremities and OMF, Head and Neck GrowthExtremities, OMF, and head and neck grew double digits in the third quarter. Extremities grew across key upper- and lower-extremity indications, while OMF, head and neck growth was driven by adoption of the mandible reconstruction algorithm and continued momentum in oncologic procedures such as neck dissections. After adjusting for case stock from the prior-year third quarter, extremities growth was about 15%.
- Expanded Commercial FootprintThe extremities and OMF, head and neck sales organization reached 132 representatives and 15 Regional Directors, 15 more than at the start of the year. Axogen also had 3 field-based market development managers supporting OMF and head and neck and 3 clinical development managers supporting prostate.
- Higher Account ProductivityYear-to-date, high-potential accounts generated 61% of revenue and 55% of growth, with productivity increasing 22%. Productivity in non-high-potential accounts rose 25%, while productivity across all accounts increased 22%.
- Near-Universal Commercial Payer CoverageElevance removed the nerve-gap-length criterion from its Avance utilization-management policy in August. Aetna extended coverage to Avance for short-to-medium sensory nerve gaps of 30 millimeters or less in the upper extremity. Commercial payer coverage for Avance reached approximately 96% of covered lives in the United States, satisfying the company's strategic-plan milestone for near-universal coverage. Since the second quarter of 2025, Axogen added an estimated 87.6 million commercial and Medicare Advantage lives across Cigna, Elevance, Aetna, and 12 Blue Cross Blue Shield regional plans.
- Progress in Clinical EvidenceResults from the MATCH study were published, demonstrating that motor recovery with Avance was comparable with autograft in mixed and motor nerve reconstruction. The Nerve-RESTORE study enrolled its first patient, with additional site activations planned for the fourth quarter. EMBRACE study start-up is underway, with the first site initiation planned for the fourth quarter.
- BioCircuit Acquisition CompletedAxogen completed its acquisition of BioCircuit on October 1 for a purchase price of $200 million plus transaction expenses. The acquisition added NerveTape as a sixth product in Axogen's nerve-repair algorithm. Management expects the transaction to contribute to revenue growth and adjusted EBITDA margin in the first year while Axogen remains free cash flow positive.
- NerveTape Expansion OpportunityNerveTape is intended to serve as a faster and easier coaptation aid, can be used with Avance in large-gap repairs, and expands Axogen into direct repair, which management said represents approximately 40% to 50% of transected nerve procedures. The combined Axoguard Connector and NerveTape penetration of the overall procedure TAM was around 5%, indicating the company views the opportunity as broad across direct and indirect repairs.
- NerveTape Commercial IntegrationAxogen's direct sales organization assumed all BioCircuit sales and distribution responsibilities. BioCircuit historically served roughly 400 accounts through approximately 50 independent distributor representatives, while Axogen has a footprint of close to 3,000 accounts. Management said the NerveTape sales process had begun and that the sales organization was very enthusiastic about the product.
- Prostate Nerve Reconstruction Planned for 2027Axogen plans to initiate prostate nerve reconstruction market development in 2027. More than 220 patients have received prostate nerve reconstruction with Avance across 15 clinical development sites. Among 117 patients with at least 6 months of follow-up, surgeons reported that approximately 80% achieved better-than-expected erectile-function recovery, defined as a SHIM score of 15 or higher. More than 95% achieved pad-free urinary continence at or above expected levels, and no graft or grafting procedure-related complications were reported.
- Prostate Clinical and Market OpportunityManagement cited an estimated 110,000 robotic prostatectomy procedures annually and plans to initially focus on academic centers, high-volume centers, and centers performing unilateral and bilateral reconstructions and nerve-sparing procedures. Management stated that prostate grafts are shorter, which should improve productivity per donor, and that prostate is expected to be helpful for production initiatives.
- Raised Full-Year 2026 GuidanceAxogen now expects full-year 2026 revenue growth of at least 29%, or revenue of at least $290 million, including at least $7 million from BioCircuit. Excluding BioCircuit, organic revenue is expected to be at least $283 million, representing organic growth of at least 26%. The company continues to expect gross margin of at least 73% and positive free cash flow for the full year.
DE:LT3 Earnings History
| Report Date | Fiscal Quarter | Forecast / EPS | Last Year's EPS | EPS YoY Change | Press Release |
|---|---|---|---|---|---|
| Feb 23, 2027 | 2026 (Q4) | 0.13- | 0.06 | ― | ― |
| Oct 28, 2026 | 2026 (Q3) | 0.120.19 | 0.11 | 75.00% (+0.08) | |
| Jul 29, 2026 | 2026 (Q2) | 0.110.11 | 0.11 | 0.00% (+0.00) | |
| Apr 28, 2026 | 2026 (Q1) | 0.070.06 | -0.02 | 450.00% (+0.08) | |
| Feb 24, 2026 | 2025 (Q4) | 0.080.06 | 0.06 | 0.00% (+0.00) | |
| Oct 29, 2025 | 2025 (Q3) | 0.060.11 | 0.06 | 71.43% (+0.04) | |
| Aug 05, 2025 | 2025 (Q2) | 0.060.11 | 0.04 | 140.00% (+0.06) | |
| May 08, 2025 | 2025 (Q1) | 0.01-0.02 | -0.05 | 66.67% (+0.04) | |
| Feb 25, 2025 | 2024 (Q4) | 0.030.06 | -0.05 | 216.67% (+0.12) | |
| Nov 07, 2024 | 2024 (Q3) | 0.010.06 | 0.01 | 600.00% (+0.05) |
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
